About this Course

AS 12– Income Taxes – sets out the accounting treatment for income taxes. It deals with the accounting for the current and future tax consequences of transactions and introduces the concept of deferred tax to address the mismatch between taxable profits and accounting profits.

Participants will learn the underlying principles of deferred tax and applying their understanding of the principles to account for deferred tax in the financial statements.

Programme Outline 

Day 1

• Introduction to current and deferred tax
  
• General principles of IAS 12
  
• Accounting for current tax
  
• Recognition of current tax liabilities and current tax assets
  
• Treatment of withholding and underlying taxes
  
• Uncertain tax positions
  
• Presentation and disclosure of current tax
  
• Accounting deferred tax using a stepped approach
  
• Concept of tax base
  
• Definition of tax base of an asset
  
• Definition of tax base of a liability
  
• Obtain the tax base from a tax computation
  
• Concept of temporary differences
  
• What are the exceptions to recognizing deferred tax on temporary differences
  
• Applying the exception rule
  
• Determine the applicable tax rate according to certain principles
  
• What are the offsetting rules
  
• Assess deductible temporary differences, tax losses and tax credits for recoverability
  

Day 2

• Recognising deferred tax
  
• Presentation and offsetting of current and deferred tax
  
• Disclose details of current and deferred tax
  
• Practical applications
  
• Case study to reinforce the principles of deferred tax
  
• Calculating deferred tax for hire---purchase assets
  
• Impact of deferred tax for investment properties carried at fair value
  
• Impact of deferred tax in group situations eg deferred tax from a business combination and elimination of unrealized profit
  

Intended For

This Intermediate to Advanced Level programme is suitable for Practising Accountants, Non-Practising Accountants and Audit Professionals.

Training Methodology

Lecture style, with Practical Exercises/Case Studies

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